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Subcommittee clarifies abandoned‑building tax credit, sends S.853 to full committee
Summary
S.853, a bill to clarify eligibility and filing timing for abandoned‑building rehabilitation tax credits, was presented by staff and the sponsor and advanced to the full committee after sponsors said the change aligns law with legislative intent and avoids retroactive credit disgorgement.
The subcommittee moved S.853, a bill aimed at clarifying the abandoned‑buildings tax credit, to the full committee after brief discussion.
Committee staff summarized S.853 as a measure that removes the requirement that a building be income‑producing prior to a period of abandonment, deletes an outdated state‑owned abandoned‑building definition, changes the timing for a taxpayer's notice to the Department of Revenue to before incurring rehabilitation expenses (rather than before obtaining a building permit), and prohibits assigning or collateralizing credits earned under the chapter. The act would take effect upon the governor's approval, staff said.
Senator from Beaufort, an author of the bill, explained that the statutory phrasing has been interpreted recently to require a prior income‑producing use, which, if left unclarified, could trigger retroactive recoupment of credits taken in prior years. The sponsor said legislative intent supported a definition based on continuous non‑operation rather than prior income generation.
After limited discussion, the subcommittee voted to move S.853 forward to the full Finance Committee for consideration next week.
